Democrats pursue tax penalty for companies paying low wages

Top Senate Democrats are pushing the White House to consider a tax penalty on large companies unless they pay workers $15 per hour, as they scramble to replace the loss of a minimum-wage increase from Joe Biden’s $1.9tn stimulus bill.

The last-minute change being sought by senior members of Biden’s party highlights the unrest among progressive Democrats over the expected lack of any provision forcing companies to pay higher salaries in the fiscal package.

The issue is emerging as a flashpoint among Democrats as the stimulus bill, which is Biden’s top legislative priority, moves to the Senate after being passed on Saturday morning by the US House of Representatives.

The push for a penalty on big employers that fail to pay high enough wages is being led by Ron Wyden, the chair of the Senate finance committee, and Bernie Sanders, the chair of the Senate budget committee.

It developed after Democrats’ hopes of securing a straight minimum wage increase in the…

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